Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-9, 2016 ISSN: 2454-1362, http://www.onlinejournal.in

Micofinance – A Holistic Approach towards Financial Inclusion

K. Santosh1, Dr. S. E. V. Subrahmanyam2 & Dr. T. Narayana Reddy3 1Mr.K.Santosh, Research Scholar (Full Time), Dept. of Management Studies, SITAMS (RRC) Under JNTUA, Chittoor. 2Dr.S.E.V.Subrahmanyam, Professor, Dept. of Management Studies, SITAMS, Chittoor. 3Dr.T.Narayana Reddy, Assistant Professor&Head, Dept. of Management Studies, JNTUA College of Engineering, Ananthapuramu.

Abstract: Microfinance in India emerged in the late through 7.9 million SHGs with thrift & deposits of 1980s in response to the gap in availability of about Rs. 1,36,914 million, annual loan off take of banking services for the un-served and underserved Rs. 3,72,869 million and loan outstanding of nearly rural population. In India microfinance operates Rs. 5,71,192 million. through two main channels viz. a) SHG – Bank Linkage Programme (SHG-BLP) b) Microfinance Microfinance sector has covered a long Institutions (MFIs). The Self-Help Group (SHG) journey from micro savings to micro credit and Bank Linkage Programme has during last two then to micro enterprises and now entered the field decades covered more than 10.01 crore Indian of micro insurance, micro remittance, micro poor households, making it the largest community pension and micro livelihood. This gradual and based microfinance programme in the world. It is evolutionary growth process has given a great an instrument for financial inclusion and inclusive boost to the rural poor in India to reach reasonable growth. The Self-Help Groups (SHGs) are linked to economic, social and cultural empowerment, banks under SHG bank linkage programme to leading to better life of participating households. provide financial services to the poor and Financial institutions in the country have been vulnerable sections for poverty reduction, and to playing a leading role in the microfinance reduce dependence on traditional sources, whose programme for nearly two decades now. interest rates are overpriced. Financial inclusion is aimed at providing banking and financial services Microfinance has made tremendous strides to all people in fair transparent and equitable in India over the years and it has become a manner at affordable cost. The present study household name in view of the multi-pronged depends on secondary data. In this study gives a benefits reaped/receivable from microfinance clear picture about the progress of microfinance services by the poor in our country. Self Help models in India, schematic representation of Groups (SHGs) have become the common vehicle microfinance approach towards financial inclusion of development process, converging all and also identify the major problems faced by the development programmes. SHG–Bank Linkage Women SHGs. It found that it is necessary to Programme launched by NABARD way back in improve the financial inclusion by extending and 1992 envisaging synthesis of formal financial delivering of financial services through system and informal sector has become a microfinance and bank branches to the rural areas movement throughout the country. It is considered particularly marginalized groups and also provide as the largest microfinance programme in terms of training to the SHGs to overcome these problems outreach in the world and many other countries are thereby improve their standard of living. keen to replicate this model. At present, a large number of Self-Help Group Promoting Institutions Key Words: Banks, Financial Inclusion, (SHPIs), all the banking agencies and MFIs are Microfinance, NABARD, RBI, SHGs. pursuing this programme for the up liftment of the poor. This is also recognized as a part of priority Introduction sector lending and normal banking business by Reserve Bank of India. Thus, it is synonymous Inadequacies in access to formal finance with microfinance programme of the country. This have led to the growth of microfinance in India. programme is also the main contributor towards the During the current year too, microfinance has Financial Inclusion process in the country. registered an impressive expansion at the grass root level. Today it touches 101 million households

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Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-9, 2016 ISSN: 2454-1362, http://www.onlinejournal.in

Financial inclusion is not a recent undertaking the “Swabhimaan” campaign to cover phenomenon. In India it can be traced back to 1904 over 74,000 villages, with a population more than in India, when the co-operative movement began in 2,000 (as per 2001 census), with banking facilities. the country. A focal event in its evolution was the bank nationalization program in 1969, when 14 Microfinance on the Indian Subcontinent major commercial banks were nationalized, and the lead bank scheme was, subsequently, introduced. Microfinance is defined as, financial As a consequence, branches were opened in large services such as saving accounts, insurance funds numbers across the nation, even in areas that were and credit provided to poor and low income clients until then unreached by banks. so as to help them to increase their income, thereby improving their standard of living. Definition of Financial Inclusion Loans to poor people by Banks have many Although the target groups may be limitations including lack of security and high different from county to country or region to operating costs. As a result, microfinance has region, financial inclusion refers, in its broadest developed as an alternative to provide loans to poor sense, to the delivery of financial services at people with the goal creating financial inclusion affordable costs to all sections, particularly weaker and equality. section. In this context the main features of A Committee on financial inclusion Microfinance are, (2008) headed by Dr. C. Rangarajan defined financial inclusion as, “The process of ensuring • Loan given without Security access to financial services and timely and • Saving First and Credit Later adequate credit where needed by vulnerable groups • Progressive Lending such as weaker sections and low income groups at • Credit-Rationing an affordable cost”. • Loans to those people who live Below the Poverty Line CRISIL defines financial inclusion (2013) • Members of SHGs may benefit from as, “The extent of access by all sections of society Microfinance to formal financial services, such as credit, deposit, • It provides an incentive to grab the self insurance and pension services”. employment opportunities • It is meant to assist small entrepreneurs Financial products & services are and producers identified as basic banking services like deposits • accounts, institutional loans, access to payment, Terms and Conditions offered to Poor remittance facilities & also life & non life People are decided by NGOs insurance services. The following are the Models of Micro Finance denotation & connotation of financial inclusion in India. Microfinance services are provided mainly by two models involving credit linkage with • Affordable credit Banks. • Savings bank account • Payments & Remittances SHG Bank Linkage Programme (SBLP) Model • Financial advice • Credit/Debit cards A Self Help Group (SHG) is a small group • Insurance facility of 10 to 20 persons of rural poor who come • Empowering SHGs (Self Help Groups) together to mutually contribute to common fund for meeting their emergency needs. SHG - Bank Background of Financial Inclusion Linkage Programme was introduced by NABARD in 1992. This Model involves the SHGs financed The efforts to include the financially directly by the banking agencies viz., Commercial excluded segments of the society in the formal Banks (Public Sector and Private Sector), Regional financial system in India are not new. The concept Rural Banks (RRBs) and Cooperative Banks. was first introduced by the RBI in 2005 and branchless banking through banking agents called MFI Bank Linkage Model Bank Mitra (Business Correspondent) was started in the year 2006. In the year 2011, the Government Under this model, Micro Finance of India gave a serious push to the program by Institutions (MFIs) avail bulk loans from Banks for

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Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-9, 2016 ISSN: 2454-1362, http://www.onlinejournal.in on-lending to SHGs and other small borrowers sustainability of social development and economic covered under microfinance sector. prosperity. Microfinance sector has responded to these challenges admirably in the last 20 years. Literature Review NABARD is proud to say that the Self Help Group- Bank linkage programme, which is the largest Diganta KR. Mudoi, in his article (2012) entitled microfinance programme in the world. We need to “A study and analysis of financial inclusion in remember and continuously emphasize the fact that India”, mentioned that the Public-Private SHG is a tool for holistic empowerment of poor partnerships can contribute to financial inclusion and not just a provider of credit or a conduit of with government offering the appropriate financial inclusion. regulatory framework and incentives to service providers, and private operators increasing their So, the present study is undertaken to institutional outreach and range of services. Models analyze the progress of microfinance models in of banking sector can use to expand financial India, review the schematic representation of access include retail banking, wholesale banking in microfinance approach towards financial inclusion partnership with MFIs, and Franchise (or) agent in India and also identify the major problems faced banking. by the women SHGs. Dr. Christabell. P. J. and Vimal Raj. A, in his Objectives of the Study article (2012) entitled “Financial Inclusion in Rural The following are the objectives of the India: The Role of Microfinance as a Tool” present study. recommended that Microfinance Institutions  To know the progress of microfinance (MFIs) play a significant role in facilitating models in India. inclusion, as they are uniquely positioned in reaching out to the rural poor. Many of them  To review the schematic representation of operate in a limited geographical area, have a microfinance approach towards financial greater understanding of the issues specific to the inclusion in India. rural poor. Even though, in India, the microfinance  To identify the major problems faced by model extends credit and savings to the poor, the the women SHGs. challenges faced by the industry has to be rectified Research Methodology in due course for the effective working of the The present study depends on secondary model. data. Data published by various institutions such as Government of India (GOI), National Bank for Statement of the Problem Agriculture and Rural Development (NABARD), etc. are used for the purpose of the present paper. Achieving balanced and inclusive economic growth is a key challenge faced by the Overall Progress under SHG-Bank Linkage policy makers in countries around the world. Gains Programme during last Ten years of economic growth are easily accessible to Savings Accounts of SHGs with Banks during relatively advantaged, who find it easier to 2006-07 to 2015-16 participate in the growth process while, poor people have to wait much longer to reap the The following table presents Saving benefits. Engaging these sections of society to Accounts of SHGs with banks during 2006-07 to mainstream economically is essential to achieve 2015-16. equitable growth, which is critical for the long-term Table No.1 Savings Accounts of SHGs with Banks during 2006-07 to 2015-16 No.of SHGs (Lakhs) Amount (Crore) As on 31st March Total Out of which under Total Out of which under SHGs NRLM/SGSY SHGs NRLM/SGSY 2006-07 41.60 9.56 3512.71 757.50 50.09 12.03 3785.39 809.51 2007-08 (20.4) (25.8) (7.8) (6.9) 61.21 15.05 5545.62 1563.38 2008-09 (22.2) (25.1) (46.5) (93.1) 69.53 16.93 6198.71 1292.62 2009-10 (13.6) (12.5) (11.8) (17.3) 74.62 20.23 7016.30 1817.12 2010-11 (7.3) (19.4) (13.2) (40.6)

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Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-9, 2016 ISSN: 2454-1362, http://www.onlinejournal.in

79.60 21.23 6551.41 1395.25 2011-12 (6.7) (5.0) (-6.7) (-23.2) 73.18 20.47 8217.25 1821.65 2012-13 (-8.1) (-3.6) (25.4) (30.6) 74.30 22.62 9897.42 2477.58 2013-14 (1.53) (10.46) (20.45) (36.01) 76.97 30.52 11059.84 4424.03 2014-15 (3.59) (34.92) (11.74) (78.56) 79.03 34.57 13691.39 6244.97 2015-16 (2.68) (13.27) (23.79) (41.16) Source: www.nabard.org

(Figures in brackets indicates growth/decline in per cent over the previous year)

The above table states that Saving Accounts of Bank Loans Disbursed to SHGs during 2006-07 SHGs are 41.60 Lakhs as on 31st March, 2007 to 2015-16 increased to 79.03 Lakhs as on 31st March, 2016 and Amount of Saving Accounts of SHGs are The following table presents Bank Loans 3512.71 Crore on 31st March, 2007 increased to Disbursed to SHGs during 2006-07 to 2015-16. 13691.39 Crore as on 31st March, 2016. Similarly under SGSY also increased in terms of SHGs and Amount. Table No.2 Bank Loans Disbursed to SHGs during 2006-07 to 2015-16 No.of SHGs (in Lakhs) Amount (in Crore) During the Year Total Out of which under Total Out of which under SHGs NRLM/SGSY SHGs NRLM/SGSY 2006-07 11.05 1.88 6570.39 1411.02 12.27 2.46 8849.26 1857.74 2007-08 (11.0) (30.5) (34.7) (31.7) 16.09 2.64 12253.51 2015.22 2008-09 (31.1) (7.3) (38.5) (8.5) 15.86 2.67 14453.30 2198.00 2009-10 (-1.4) (1.0) (17.9) (9.1) 11.96 2.41 14547.73 2480.37 2010-11 (-24.6) (-9.9) (0.01) (12.8) 11.48 2.10 16534.77 2643.56 2011-12 (-4) (-12.9) (13.7) (6.6) 12.20 1.81 20585.36 2207.47 2012-13 (6.3) (-13.8) (24.5) (-16.5) 13.66 2.26 24017.36 3480.60 2013-14 (12.02) (24.56) (16.67) (57.67) 16.26 6.43 27582.31 9487.69 2014-15 (19.03) (184.5) (14.84) (172.58) 18.32 8.16 37286.90 16785.78 2015-16 (12.67) (26.91) (35.18) (76.92) Source: www.nabard.org

(Figures in brackets indicates growth/decline in per cent over the previous year)

The above table states that Bank Loans Disbursed Bank Loans Outstanding against SHGs during to SHGs in terms of No.of SHGs is 11.05 Lakhs 2006-07 to 2015-16 during 2006-07 increased to 18.32 Lakhs during 2015-16 and in terms of Amount 6570.39 Crore The following table presents Bank Loans during 2006-07 increased to 37286.91 Crore during Outstanding against SHGs during 2006-07 to 2015- 2015-16. Similarly under SGSY also increased in 16. terms of SHGs and Amount during 2010-11 to 2015-16.

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Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-9, 2016 ISSN: 2454-1362, http://www.onlinejournal.in

Table No.3 Bank Loans Outstanding against SHGs during 2006-07 to 2015-16 No.of SHGs (Lakhs) Amount (Crore) As on 31st March Total Out of which under Total Out of which under SHGs NRLM/SGSY SHGs NRLM/SGSY 2006-07 28.94 6.87 12366.49 3273.03 36.25 9.16 16999.91 4816.87 2007-08 (25.3) (33.4) (37.5) (47.2) 42.24 9.76 22679.84 5861.72 2008-09 (16.5) (6.5) (33.4) (21.7) 48.51 12.45 28038.28 6251.08 2009-10 (14.8) (27.5) (23.6) (6.6) 47.87 12.86 31221.17 7829.39 2010-11 (-1.3) (3.4) (11.4) (25.2) 43.54 12.16 36340.00 8054.83 2011-12 (-9.0) (-5.4) (16.4) (2.9) 44.51 11.93 39375.30 8597.09 2012-13 (2.2) (-1.9) (8.4) (6.7) 41.97 13.07 42927.52 10177.42 2013-14 (-5.71) (9.55) (9.02) (18.38) 44.68 18.46 51545.46 19752.74 2014-15 (6.46) (41.24) (20.06) (94.08) 46.73 21.91 57119.23 26610.16 2015-16 (4.59) (18.69) (10.81) (34.72) Source: www.nabard.org

(Figures in brackets indicate growth/decline in per cent over the previous year)

The above table states that Bank Loans MFI Bank Linkage Model outstanding against SHGs in terms of No.of SHGs is 28.94 Lakhs as on 31st March, 2007 increased to Top 10 MFIs in India by Geographical Spread 46.73 as on 31st March, 2016 and in terms of Amount 12366.49 Crore as on 31st March, 2007 The following table presents Top 10 MFIs increased to 57119.23 Crore as on 31st March, operating in Number of Indian States/UTs. 2016. Similarly under SGSY also increased in terms of SHGs and Amount during 2010-11 to 2015-16. Table No.4 Top 10 MFIs Operating in Number of Indian States/Union Territories during 2014-15 S.No Name of MFI No. of States/UTs 1 Ujjivan Financial Services Private Limited 24 2 Bandhan Financial Services Limited 22 3 SKS Microfinance Limited 19 4 Janalakshmi Financial Services Private Limited 17 5 Bhartiya Samruddhi Finance Limited (Basix) 15 6 Share Microfin Limited 14 7 Spandana Sphoorty Financial Limited 12 8 Asmitha Microfin Limited 12 9 Satin Creditcare Network Limited 11 10 North East Region Finservices Limited 11 Souce: www.sa-dhan.net

The above table states that Ujjivan Financial Top 10 MFIs with Loan Portfolio Outstanding Services has the largest geographical spread with the operations across compared to 22 states for The following table presents List of Top st Bandhan Bank and 19 states for SKS for 10 MFIs with Loan Portfolio as on 31 March, Microfinance. 2015.

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Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-9, 2016 ISSN: 2454-1362, http://www.onlinejournal.in

Table No.5 List of Top 10 MFIs with Loan Portfolio as on 31st March, 2015 S.No Name of MFI Gross Loan Portfolio(in Crore) 1 Bandhan Financial Services Limited 9524 2 SKS Microfinance Limited 4155 3 Janalakshmi Financial Services Private Limited 3774 Shree Kshetra Dharmasthla Rural Development Project 4 3570 (SKDRDP) 5 Ujjivan Financial Services Private Limited 3274 6 Spandana Sphoorty Financial Limited 2665 7 Equitas Microfinance India Private Limited 2144 8 Satin Creditcare Network Limited 2141 9 Share Microfin Limited 1603 10 Grameen Koota Financial Services Private Limited 1447 Souce: www.sa-dhan.net

The above table states that Bandhan Bank is the Top 10 MFIs Disbursing Loans leader in Gross Loan Portfolio followed by SKS Microfinance and Janalakshmi Microfinance which The following table presents List of Top is an urban focused is placed third with Rs. 3774 10 MFIs Disbursing Loans during 2014-15 Crore Outstanding. Table No.6 List of Top 10 MFIs Disbursing Loans during 2014-15 S.No Name of MFI Loan Disbursed (in Crore) 1 Bandhan Financial Services Limited 14989 2 SKS Microfinance Limited 6891 3 Ujjivan Financial Services Private Limited 4328 4 Janalakshmi Financial Services Private Limited 4121 Shree Kshetra Dharmasthla Rural Development Project 5 3530 (SKDRDP) 6 Satin Creditcare Network Limited 2366 7 Equitas Microfinance India Private Limited 2129 8 Spandana Sphoorty Financial Limited 1981 9 Grameen Koota Financial Services Private Limited 1894 10 Grama Vidiyal Microfinance Limited 1699 Souce: www.sa-dhan.net

The above table states that Bandhan Bank Ujjivan is in the third place at Rs.4328 Crore disbursed the largest loan amount of Rs.14989 disbursed followed closely by Janalakshmi Crore which is 110 per cent of what SKS Microfinance at Rs.4121 Crore. Microfinance disbursed during the same year. Schematic Representation of Microfinance Approach towards Financial Inclusion

CREDIT •Woman MICROFINAN INSURAN Empowerm SAVING CE CE ent S •Micro Enterprises

The above figure shows that Microfinance is a their empowerment. In microfinance approach holistic approach towards financial inclusion. mainly concentrate on giving Credit to the Women Because in that “Savings first, Credit later SHGs. approach” is most useful to Woman SHGs for

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Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-9, 2016 ISSN: 2454-1362, http://www.onlinejournal.in

The majority of this credit amount is and Bank Loans Outstanding against useful to fulfill their needs as well as their SHGs are increased in terms of No.of children’s education, establishment of micro SHGs and Amount during 2006-07 to units and create employment opportunities in 2015-16. the rural areas. This leads to improve their standard  The Ujjivan Financial Services (24 states) of living and inclusive growth for the Indian has the largest geographical spread with economy. the operations across compared to 22 states Major Problems faced by the Women SHGs for Bandhan Bank and 19 states for SKS for Microfinance. The following are the major problems  The Bandhan Bank (9524 Crore) is the faced by the women SHGs. leader in Gross Loan Portfolio followed by SKS • Literacy level Microfinance (4155 Crore) and • Gender Issues Janalakshmi Microfinance which is an • Market risk and uncertainties urban focused is • Problem of Marketing placed third with Rs. 3774 Crore • Lack of information Outstanding. • Family discouragement  The Bandhan Bank disbursed the largest • Caste and Religion loan amount of Rs.14989 Crore which is • Socio-economic factors 110 per • Psychological factors cent of what SKS Microfinance disbursed • Delay in obtaining credit facilities during the same year. Ujjivan is in the • Exploitation by strong members third • Lack of financial and family support place at Rs.4328 Crore disbursed followed closely by Janalakshmi • Lack of practical knowledge and technology knowhow Microfinance at Rs.4121 Crore. • Lack of self confidence and risk bearing  Microfinance is a holistic approach capacity towards financial inclusion. Because in • Lack of stability and unity among that savings first, Credit later approach is members most useful to Woman SHGs for their empowerment as well as fulfill their needs Findings such as children’s education, From the above analysis the following establishment of micro units and create findings are made. employment opportunities in the rural areas.  The Saving Accounts of SHGs are 41.60  The major problems faced by the Women Lakhs as on 31st March, 2007 increased to st SHGs it is important to overcome the 79.03 Lakhs as on 31 March, 2016 and problems for improving of financial Amount of Saving Accounts of SHGs are inclusion in India. 3512.71 Crore on 31st March, 2007 st increased to 13691.39 Crore as on 31 Suggestions March, 2016.  The Government of India, RBI and Banks  The Bank Loans Disbursed to SHGs in can frame effective measures to strengthen terms of No.of SHGs is 11.05 Lakhs the microfinance sector and achieve during 2006-07 increased to 18.32 Lakhs greater financial inclusion in India. during 2015-16 and in terms of Amount  6570.39 Crore during 2006-07 increased Most of the rural and semi-urban people to 37286.91 Crore during 2015-16. are illiterates. So the banks and  The Bank Loans outstanding against microfinance companies should conduct SHGs in terms of No.of SHGs is 28.94 awareness campaigns about the products Lakhs as on 31st March, 2007 increased to and services offer by them to increase the 46.73 as on 31st March, 2016 and in terms financial inclusion. of Amount 12366.49 Crore as on 31st  The Banks also conduct awareness March, 2007 increased to 57119.23 Crore campaigns about advanced technological as on 31st March, 2016. developments in banking services it is  Under SGSY/NRLM Saving Accounts of useful to the customer to adopt those SHGs, Bank Loans Disbursed to SHGs

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Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-9, 2016 ISSN: 2454-1362, http://www.onlinejournal.in

services and also lead to improve the other regulatory bodies have taken various steps to financial literacy in the rural areas. solve the problems of women SHGs and by the  All Self Help Group members should open way of providing training to the SHGs to gain individual accounts to do the formal marketing related skills, communication skills, financial transactions such as savings, leadership skills and team building skills etc. apart deposit, credit and insurance services from providing various types of incentives and which lead to improve financial inclusion. subsidies. Hence it is necessary to improve the financial inclusion by adopting new models for  In the rural areas Business Correspondents delivering and extending of financial services to the (BC) plays a major role in achieving rural areas particularly large hitherto un-served financial inclusion. So they are feel free to population of the country to unlock its growth clarify doubts arises from the rural people potential. it is most important.  As per Census 2011 rural population in References India is 68.84 per cent. So the banks should concentrate and extending banking Articles in Journal services to the rural people to achieve 1. Diganta KR. Mudoi (2012), “A study and greater financial inclusion. Analysis of Financial Inclusion in India”,  Frequent awareness camps can be ‘www.ijrcm.org.in’, Volume No. 3, Issue organized by the Rural Development No. 9, September, pp. 91-94. Department authorities to create 2. Dr. Christabell. P. J. and Vimal Raj. A awareness about the different schemes of (2012), “Financial Inclusion in Rural assistance available to the participants in India: The Role of Microfinance as a the SHGs. Tool”, ‘www.iosrjournals.org’, Volume  Non-Government Organizations (NGOs) No. 2, Issue No. 5, Sep-Oct, pp. 21-25. can play a significant role in empowering Books and Reports women entrepreneurs by providing basic education, motivation training and 1. “Status of Microfinance in India” Reports financial help and so on. 2006 to 2016. 2. “Banking on Self - Help Groups Twenty  In order to solve the various problems relation to marketing of SHGs, the state Years On” (2012), Ajay Tankha, pp. 35- level organizations should extend the 36. activities throughout the state instead of 3. “The Bharat Microfinance Report” (2015), limiting its operations in a particular area. pp. 14-15, 22-30.  Lastly, arrangements may be made by the 4. Pradhan Mantri Jan-Dhan Yojana, A financial institutions for providing National Mission on Financial Inclusion, adequate financial assistance to the SHGs pp. 5. strictly on the basis of their actual 5. “A HUNDRED SMALL STEPS”, Report performance without any discrimination of of the Committee on Financial Sector caste, politics...etc. This leads to improve Reforms, 2009, pp. 49-50. the financial inclusion in the rural areas 6. CRSIL Inclusix, An index to measure particularly. India’s progress on Financial Inclusion, Conclusion june-2013, pp. 17-19. The success and outreach of MFIs, Websites especially the large ones both in credit and financial penetration enabled them to obtain 1. www.nabard.org. approval to operate as mainstream banks/Small 2. www.sa-dhan.net Finance banks which will facilitate lowering the 3. www.rbi.org cost of funds and also passing on the benefit to 4. www.crisil.com their clients such as SHGs in the rural areas which 5. www.pmjdy.gov.in leads to improve the financial inclusion in India. 6. https://en.wikipedia.org/wiki/Microfin Hence, it becomes necessary for the society and government to find solutions for the problems of ance. women SHGs. Already the state and central governments, National Bank for Agriculture and Rural Development (NABARD), Non- Governmental Organizations (NGOs), Banks and

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